If you have seen the Network League Table, a word of warning, this should not be viewed as indication of which networks are “best”, it is purely to illustrate the movement of AR firms. Speak to Network Consulting to find the proposition that is best for YOU.
Those that have viewed looked at it will see that the most notable point is that collectively, there are almost 100 more AR firms leaving than have joined networks in Q1 2023.
However, we have to be mindful of not jumping to conclusions on this single statistic, as there are many reasons why network AR member firms move.
Of the advisers Network Consulting have been talking to, no clear trend for leaving has been picked up as yet and there are still a high level of firms and advisers looking for a new home. So, it’s far too early to draw anything meaningful from the AR firm movements this year so far.
I don't believe that our enquiries are a complete representation of the market movements in their entirety, but only around 10% of the people we talk to are looking to go DA, the vast majority are looking for a network or a new home as adviser.
Many may consider that the implementation of the AR Regime, which requires a network to apply a higher level of due diligence, scrutiny, monitoring and oversight has had an impact on the number of firms exiting networks.
Equally some may feel that the preparation and implementation of procedures for Consumer Duty could also have had an influence on the numbers leaving, with the added strain and network requirements.
Other contributory factors to the higher number of exiting firms, is that some networks have set new productivity thresholds, forcing some advisers to leave their network, while other advisers have been taken in to other firms within the same network. This has been corroborated with some of my conversations with network principals.
It is fair to say that many networks are still taking a good number of ARs and advisers alike which is clear from the table, with some opening stating that they have aggressive growth plans.
Network Consulting are receiving a good level of enquiries, which indicates a high level of movement and as already stated, there are no specific trends in their reasons for making a move. This includes AR to DA or visa-versa, and I have to say that none have sited any of the potential reasons noted above to us directly.
For more information and tips, please go to www.network-consulting.co.uk
Network consulting is an independent service for financial intermediaries, helping them find the best provider solution for their business requirements.
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